The Theory of Price (book)

"The Theory of Price" by Frank Knight explores how prices are formed in markets through the interaction of supply and demand, emphasizing the role of individual choices and expectations. It examines how prices serve as signals for resource allocation, balancing what producers want to sell and what consumers want to buy. The book delves into concepts like utility, value, and competition, providing a nuanced understanding of how prices help coordinate economic activity. Overall, it offers a detailed analysis of the mechanisms behind price determination in a free-market economy.